The regulatory environment in the United Kingdom is entering a period of significant change. Governance risk and compliance professionals face increasing pressure to stay informed while guiding their organisations through complex legal and regulatory developments. With multiple reforms approaching organisations must take a structured and proactive approach to governance and compliance to remain resilient and compliant.
Recent expert discussions highlighted several key regulatory themes that will shape governance practices in the coming years. These include artificial intelligence regulation economic crime legislation and updates to the UK Corporate Governance Code. Together they signal a shift toward stronger accountability clearer oversight and more transparent risk management.
Artificial intelligence regulation and responsible use
Artificial intelligence governance is gaining momentum across Europe and the UK. New regulatory frameworks aim to establish clear expectations for how AI systems are developed deployed and monitored. These rules apply to organisations that design use or commercialise AI solutions particularly where AI influences decision making outcomes or public trust.
AI use cases are now being categorised by risk level ranging from unacceptable risk to low risk. Higher risk applications require stricter controls governance documentation and ongoing monitoring. For UK organisations an important first step is to clearly understand their AI landscape. This includes identifying AI systems in use assessing their risk profile and defining policies that support ethical secure and transparent AI adoption.
Even as the UK takes a measured approach to AI regulation organisations are encouraged to prepare early. Strong AI governance frameworks will support future compliance while also building trust with regulators stakeholders and customers.
Economic Crime and Corporate Transparency Act requirements
The Economic Crime and Corporate Transparency Act introduces wide ranging obligations aimed at preventing fraud improving corporate transparency and strengthening accountability. One of the most significant changes expands organisational liability beyond board members to include senior managers who act within the scope of their authority.
This shift means responsibility for ethical conduct and fraud prevention must be clearly understood across leadership teams. Compliance can no longer sit with a single function. Legal risk audit and human resources teams must work together to embed ethical standards and fraud prevention into everyday operations.
Planned reforms to company registration and identity verification will also require improved data accuracy and record management. Organisations should begin reviewing their internal records governance processes and ownership structures to prepare for tighter verification requirements.
Updates to the UK Corporate Governance Code
Changes to the UK Corporate Governance Code place greater emphasis on outcomes culture and internal controls. Boards will be expected to demonstrate not only how decisions are made but also how those decisions support long term objectives and organisational values.
From 2025 boards must report on how they embed desired culture across the business. Reporting on diversity will focus more broadly on diversity of thought and experience rather than fixed categories. There is also increased focus on director remuneration with clearer expectations around performance based accountability.
A major future requirement is the annual board review of internal controls. From 2027 organisations must disclose how they monitor and review the effectiveness of all material controls including financial operational health and safety and sustainability controls. Boards must also explain how weaknesses are addressed and what improvements have been achieved.
These changes create an opportunity for risk and compliance teams to strengthen enterprise risk management and internal control frameworks. Clear alignment between strategy risk appetite and control effectiveness will be essential.
Managing uncertainty through integrated governance
Across all these developments a common theme emerges. Organisations must improve visibility across their risk landscape and break down siloes between departments. Effective governance depends on coordinated risk management shared accountability and consistent information flows.
Technology can play a critical role in supporting this integration. Secure digital governance platforms enable boards and leadership teams to access accurate information assess risks holistically and respond to emerging challenges with confidence.
As AI adoption grows organisations must also balance innovation with responsible oversight. Protecting sensitive governance data while leveraging advanced analytics will be a key priority for boards in the years ahead.
Preparing for the future of UK governance
The UK governance and regulatory horizon presents both challenges and opportunities. Organisations that invest early in strong governance frameworks clear accountability and integrated risk management will be best positioned to adapt.
Solutions from providers such as Dess Digital support boards and leadership teams by strengthening governance processes enhancing transparency and enabling confident decision making in an increasingly complex regulatory environment.
